3 Surprising Reasons You May Need Extra Life Insurance
Protecting young children is the number one reason we buy life insurance. But that may not be the only reason we need it. In fact, most people overlook some very common expenses when they’re estimating how much coverage to buy. Here are three reasons you may need more life insurance than you think.
No. 1: Home repairs … especially if you have an older homeMajor home repairs can take a huge toll on finances. And many won’t be covered by your homeowner’s policy. Especially if your home is older, your surviving spouse will need enough money to fund repairs and replacements.
No. 2: Support for adult children
Figure your children will be self‐supporting after they graduate from college? You may want to check those assumptions. According to Pew Research Center, almost 1 out of 3 young adults continue to need financial support … up to age 34. Make sure you consider this possibility when deciding how much coverage you need.
No. 3: Funding retirement for a surviving spouse
What happens to your spouse’s retirement plans if you die in your 50s? You will not be around to make 10 to 15 years’ worth of contributions to your savings. And that shortfall could mean a surviving spouse will struggle to live comfortably during retirement. The takeaway? It’s a good idea to double check your coverage today. You’ll want to make sure your family has enough protection to weather all kinds of situations.